MONTREAL — Saputo Inc. beat expectations as profits declined in the first quarter of its fiscal year despite a rise in sales.

The Montreal-based dairy processor earned $121.4 million or 31 cents per share for the three months ended June 30, down 3.7 per cent. The result includes an after-tax restructuring charge of $21.5 million.

Excluding non-recurring items, Saputo posted adjusted earnings of $164.9 million, or 42 cents per share, up 2.9 per cent from the second quarter last year.

Revenues were $3.67 billion, up 12.3 per cent. The acquisition of the British Dairy Crest completed last April added $152 million.

The company was expected to earn 38 cents per share in adjusted profits on $3.7 billion of revenues, according to financial markets data firm Refinitiv.